Posts tagged ‘House Prices’

Homes close to Premier League football stadiums see prices rise almost £200K in a decade

Homes close to Premier League football stadiums have seen their prices soar by more than twice the national average during the past 10 years, figures showed today.

Football 2

The typical price of a property in the same postal district as a Premier League football ground has surged by 129 per cent in the past decade, more than double the price growth of 55 per cent seen across England and Wales as a whole during the same period.

The strong price growth has left the average home close to a major football team costing £329,520 – a third higher than the national average of £249,601, according to mortgage lender Halifax.

The group said properties close to Premier League football grounds had increased by more than £185,000 since 2004 – the equivalent of a gain of £386 a week.

Manchester City leads the Premier League property table, with the price of homes close to Etihad Stadium soaring by 150 per cent during the past 10 years, although at a typical cost of just £98,178, values are still well below the national average.

Homes around Hull City’s KC Stadium have seen the second strongest gain of 123 per cent, pushing the average property’s value up to £72,535, with Chelsea coming in third place, with house prices around Stamford Bridge jumping by 121 per cent.

But not all Premier League stadiums have proved to be winners for house prices.

Newcastle United finished bottom of the house price league table, with property values close to its home ground dropping by 22 per cent during the period, making it the only Premier League team to see house price falls in its district.

Unsurprisingly, given its London location, Stamford Bridge is the most expensive Premier League ground to buy a home near, with typical prices of £959,522.

The cost of a property near Chelsea’s ground is more than 15 times more expensive than a house close to Liverpool and Everton football clubs, which average just £62,416, making them the Premier League’s cheapest properties.

Craig McKinlayCraig McKinlay, mortgage director at Halifax said: “With the Premier League hailed by many as the best in the world, for many clubs some of this success also seems to have rubbed off on the surrounding areas.

“There is no rule governing why some areas have seen greater price rises than others.

“Some areas – but not all – have benefitted from clubs moving to a new stadium and all the infrastructure improvements which are associated with this.”

Meanwhile, research by Nationwide Building Society found that based on the performance during the past year, Tottenham Hotspur would top the house price Premier League.

Property values around White Hart Lane have risen by 32 per cent in the 12 months to the end of June to average £513,435.

Chelsea and Queens Park Rangers would tie for second place with house price growth of 27 per cent, followed by Arsenal with a 23 per centgain.

But Newcastle United, Burnley and Hull City would all be relegated based on the performance of their surrounding property markets.

Newcastle saw house price growth of just 3 per cent during the year, while in Burnley prices edged ahead by 2 per cent and in Hull there was no change at all.

August 14, 2014 at 11:59 AM Leave a comment

Good news for buyers as more homes come onto the market

Buyers look set to have the upper hand in the property market during the second half of the year following a jump in the number of homes for sale.

buyers

Househunters should have more choice when looking for a home after the number of properties on the market rose by 7.3 per cent in July, as homeowners rushed to cash in on recent house price gains.

At the same time, the number of potential buyers registered with estate agents fell by nearly 3 per cent, compared to a year earlier, suggesting those looking for a new home will also face less competition, according to estate agent haart.

The situation is the reverse of the trend seen at the start of the year, when demand was increasing at a faster rate than homes were coming on to the market, putting upward pressure on prices and leading to gazumping in some parts of the country.

The change in market dynamics was most pronounced in London, which has seen the strongest house price gains during the past year.

The number of properties being put up for sale in the capital soared by 32.3 per cent year-on-year in July, but demand dived by 15.7 per cent, as many potential buyers found themselves priced out of the London market.

Paul Smith, chief executive of haart, said: “The second half of 2014 marks a shift in favour of buyers as healthy volumes of stock return to the market.

“Many homeowners are adopting a now or never attitude to take advantage of the continuing strength of the market, having seen their equity rocket over the last year, at a time when mortgage deals with decent loan-to-values are still available.

“Interest rates are set to remain at historic lows until the start of 2015 at least and this is helping confidence.”

But despite the easing in the mismatch between supply and demand, there is no suggestion that house prices will crash, with estate agents still having an average of nearly 10 potential buyers on their books for every property, although the figure is well down on the average of 14.4 buyers for every home in January.

Smith said: “The market is still competitive, but buyers now have more choice.

“As positive market sentiment continues this year, and people return from their summer sojourns, we fully expect a busy autumn with a higher volume of sales transactions.”

The group said the typical British home now cost £204,216, the highest level for two years.

But although prices are 8.1 per cent higher than they were a year ago, they edged ahead by just 0.1 per cent in July itself.

Today’s research is a further indication that the property market is beginning to slow naturally, without the need for further intervention.

It comes the day after estate agent Hamptons International predicted house price growth would slow next year as uncertainty caused by the General Election and the prospect of higher interest rates lead to an easing in buyer demand.

The group expects the typical cost of a home in England and Wales to increase by 8.5 per cent this year, before growth cools to 5.5 per cent in 2015.

It added that the London market would be hit hardest by the slowdown, with house price inflation in Greater London dropping from 15.5 per cent this year to just 3 per cent next year.

Recent figures from the Land Registry also indicated that the property market is slowing down, with prices falling in seven regions of England and Wales during June – the latest month for which figures are available.

Strong house price gains have left the typical British home costing £263,705, according to Zoopla.

August 12, 2014 at 11:26 AM Leave a comment

UPDATED: Average house prices rise by more than 10%

House price growth hit double digits in July as values rose at their fastest rate for nearly seven years, figures showed today.

House prices 2

Annual property price inflation reached 10.2 per cent during the month, the highest level since September 2007, according to mortgage lender Halifax.

Prices rose by 1.4 per cent in July itself, to leave the average British home costing £186,322.

The quarter-on-quarter change, which is considered to be less volatile than the monthly figure, showed prices shooting ahead by 3.6 per cent – the biggest jump since December 2006.

The Halifax figures are at odds with ones released by Nationwide, which showed house prices inching ahead by just 0.1 per cent during July, while the annual rate of growth slowed to 10.6 per cent, down from 11.8 per cent.

The Land Registry also said house prices stalled in June, the latest month for which it has figures, with property values falling in seven regions of England and Wales.

Stephen NoakesStephen Noakes, mortgages director at Halifax, said: “While supply remains low, housing demand continues to be supported by a continuing economic recovery, growth in employment, improving consumer confidence and low mortgage rates.”

But other surveys have pointed to a slowdown in demand from potential buyers, as well as an increase in supply as homeowners put their properties on the market in a bid to cash in on the recent price gains.

The Royal Institution of Chartered Surveyors (RICS) said new enquiries from potential buyers had continued to ease in June, as people balked at high house prices and became more cautious in the face of future interest rate rises.

Both RICS and the National Association of Estate Agents also reported seeing an increase in the number of sellers coming to the market, further easing the mismatch between supply and demand.

Matthew Pointon, property economist at Capital Economics, said: “The month to month changes have been pretty volatile from Halifax recently, so we do not read too much into that.

“It is surprising that the three-month-on-three-month measure has picked up after being stable for a while.

“But given other signs of a cooling in housing market activity, we expect house price gains to slow over the coming months.”

He added that he expected mortgage approvals to continue to increase going forward, but at a slower rate, as new measures to cool the mortgage market came into force.

Strong house price growth has pushed up the average cost of a home in Britain to £263,705, according to Zoopla.

August 6, 2014 at 9:17 AM Leave a comment

Average home costs £189K, says Nationwide

The housing market showed further signs of cooling during July with property prices edging ahead by just 0.1 per cent, figures showed today.

house prices 9

The growth, which was the lowest monthly increase since April 2013, left the typical home costing £188,949, according to Nationwide Building Society.

There was also a slowdown in the annual rate at which house prices are rising, with this easing to 10.6 per cent in July, down from 11.8 per cent in June.

Robert Gardner Chief EconomistRobert Gardner, Nationwide’s chief economist, said: “Although UK house prices recorded their fifteenth successive monthly increase in July, the pace of growth slowed.

“The slowdown was not entirely unexpected, given mounting evidence of a moderation in activity in recent months.”

Mortgage approvals for house purchase fell by nearly 20 per cent between January and May, while estate agents have also reported a drop in enquiries from potential buyers.

Gardner said at least some of the slowdown in housing market activity could be attributed to the introduction of the Mortgage Market Review in April, which requires lenders to impose tougher lending criteria.

But figures released earlier this week by the Bank of England showed a rebound in mortgage activity during June, suggesting some of the impact of the MMR was temporary.

Gardner said: “With the labour market strengthening, mortgage rates expected to remain low and consumer confidence rising, activity is likely to recover in the months ahead.”

But he added that over the longer term, house price growth would depend on the supply of new homes.

He said that while construction activity was picking up, the rate at which new properties were being built still remains far below estimates of what was needed to meet rising demand.

Today’s data provides further evidence that the housing market recovery may be beginning to slow down.

The Land Registry recently reported that house price growth in England and Wales stalled during June, with property values falling in seven regions of the country.

At the same time, both the Royal Institution of Chartered Surveyors and the National Association of Estate Agents have said more homes are coming on to the market, easing the imbalance between supply and demand.

Potential buyers are also reported to have become more cautious in the face of higher house prices and concerns about when interest rates will start rising.

Recent strong price growth has left the average UK home costing £260,311, according to Zoopla.

Meanwhile, Nationwide estimates that Stamp Duty revenues reached £10bn in the 12 months to the end of June, close to the record highs recorded in 2007/2008.

The group estimates that 42 per cent of the total, or £2.15bn, came from homes bought in London, despite the fact that transactions in the capital account for just 15 per cent of all sales.

But at the other end of the scale, homeowners in the North collectively paid just £69m in Stamp Duty, while those in Wales paid only slightly more at £70m.

July 31, 2014 at 9:38 AM Leave a comment

Mortgage approvals jump to four-month high despite tough new lending rules

Mortgage approvals for people buying a home jumped to a four-month high in June as the market recovered from the introduction of new lending rules that saw an increase in the time it takes to secure a mortgage offer.

Mortgage 6

A total of 67,196 loans were agreed for people buying a property during the month, the highest level since February, according to figures published by the Bank of England.

Pipeline loans for people remortgaging to a new deal also increased, rising to 31,682, the highest number since March.

The jump in mortgage activity during June suggests the lending market has recovered from the blip it experienced in April and May due to the introduction of the Mortgage Market Review (MMR).

The rules, which included tough new affordability criteria, led to an increase in the time it takes to secure a mortgage offer.

Mortgage brokers and commentators warned at the time of the rules’ introduction in late April that they were likely to lead to a temporary fall in mortgage approvals while lenders got to grips with new systems and processes.

Net lending, which strips out repayments and people remortgaging to a new deal, fell slightly in June, according to the Bank.

Mortgage advances on this measure totalled £2.08bn during the month, down from a spike of £2.29bn in May, but still above the recent six-month average of £1.9bn.

Samuel TombsSamuel Tombs, senior UK economist at Capital Economics, said: “The rise in the number of mortgages approved for new house purchase to a four-month high suggests that the disruption caused by the introduction of the Mortgage Market Review regulations in April has faded quickly.

“Looking ahead, further rapid rises in employment and still low mortgage interest rates should stimulate further demand for mortgage lending.

“However, with lenders set to face tough stress tests later this year and action from the Financial Policy Committee in June perhaps dampening expectations of future house price growth, the recovery in mortgage lending still looks likely to be a gradual affair.”

The figures come the day after data from the Land Registry showed house price growth in England and Wales stalled during June.

Property values fell in seven regions, with Yorkshire and the Humber seeing the biggest drop of 1.3 per cent, while prices fell by 1 per cent in both the East Midlands and North East.

Even in London, which has been the main driving force for the market, prices edged ahead by just 0.1 per cent during June.

But across England and Wales as a whole, house prices were still 6.4 per cent higher than they had been a year earlier at an average of £172,011.

The figures add to growing evidence that some of the heat is coming out of the property market, as more homes are put up for sale, easing the mismatch between supply and demand.

Surveys from estate agents also suggest that potential buyers are becoming more cautious in the face of high house prices and concerns about future increases in interest rates.

Recent strong price growth has left the average UK home costing £260,311, according to Zoopla.

July 29, 2014 at 10:47 AM Leave a comment

Older Posts Newer Posts


Zoopla Mobile & Tablet Apps

Grab the App

Zoopla.co.uk

Search over 1 million properties for sale or to rent on our site from more than 18,000 agents and developers, including all of the UK's leading names.

Posts delivered hot and fresh to your inbox. Signup for free to subscribe, (No spam... ever) and join over 16,000 others.

Enter your email address below:

Recent Posts

Follow Zoopla

Archives

About the Zoopla blog

The Zoopla property blog is maintained and edited by the Web Content Editor @ Zoopla Property Group Ltd Myra Butterworth.

Follow

Get every new post delivered to your Inbox.

Join 522 other followers

%d bloggers like this: